Whole Foods Market Inc. (WFMI) is one of our most profitable positions here on optionsmojo. We initiated our long position on November 30, 2010 when WFMI was trading at 47 and change (please check: http://optionsmojo.com/2010/11/volatility-squeeze-in-whole-foods-market-inc-wfmi/). Since then, we have seen great upside and the stock still looks extremely strong!
In the recent weeks, the broader market has given up ~ 5% from its recent highs. However, WFMI has been trading sideways creating a volatility squeeze. I think WFMI has a lot of upside from here. One can get longer here by either buying more stocks or getting long MAY 60/70 Bull Call Spread for a net debit of 3.00. The maximum profit for this spread is 7.00 (if WFMI trades at 70 my May expiration), with a 1/2.3 risk/reward.
(Full Disclosure: Author long WFMI Calls at the time of writing)
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